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Check those referencesChecking references is a frequently overlooked part of the vendor selection process. By the time you get to the point where you're ready to investigate a potential vendor or consultant, you're in such a hurry to start the project that you don't bother. Besides, who's going to give you a reference that isn't glowing? You DO need to check references. They usually are one of the final steps in making a decision about the vendor you're going to use. In addition to simply being "due diligence," the references can provide you with some very interesting information and perspectives on your potential vendor. Most people just call up and ask, "So, was Bedenoff Corporation a good firm to work with?" "They were great" "OK, thanks." Without some encouragement, the conversation is always going to go along that line. That's what the vendor is hoping for. But if you ask a few more questions, you just might find out some interesting dirt. Maybe it won't dissuade you from using the vendor. But you'll be forewarned and able to deal with the situation sooner rather than later. In my consulting role, I'm frequently called upon to check references. I recommend that you use my list as a starting point for a free-flowing discussion with the vendor's customer. It can help you make some penetrating inquiries, and get information the vendor was hoping you wouldn't discover. Remember - asking open-ended questions will generate more than a yes or no answer. But your objective is not to "interview" the reference. Your objective is to have a "conversation" with them and get the real scoop on the vendor. Question 1. What type of work did the vendor do for you? This is an obvious question, but you better ask it. You just never know. The vendor's perception of what they accomplished might be much different from the customer's. Let's say the vendor claims they installed a complete ERP system, and the customer says they did a great job of partially installing the payroll check-printing program. This nugget of information might affect your decision about giving them the contract for that new complete manufacturing system. If you just asked, "How'd they do?" you'll never get that particularly relevant piece of information. Question 2. Would you use them again? How? Obviously, if the company did such a good job that the client would use them again, that's a powerful recommendation. Even better are companies that HAVE used them a second time, or are using them right now. And if they say they wouldn't use them again, you had better find out why. Question 3. What problems did you have? How fast did they respond to problems and was the response satisfactory? Ask about a specific problem and get details. Even the best laid plans will have some rough spots. So find out what the wrinkles were. If it turns out that they were a little slow in responding to phone calls, and that's the kind of thing that really ticks you off, you'd better think twice about your selection. Sometimes the problems are political or personality-based, which may not even be relevant to your situation. But maybe they are. I once did a check and found that several of the customers had "minor" problems with the individual consultant assigned to their projects. It turned out that this fellow had a little problem dealing with today's diverse working environment. It was OK at some customers, but it was a problem at others. It turned out that my client was a small organization, and they were able to get along perfectly well with the consultant. But it could have been a disaster. So ask about problems and follow-up when the reference says, "Well, we DID have a little issue..." Question 4. Did the vendor meet your goals for the project, time-frames and costs? If they missed any objectives, why? This is a yes or no question, but it's complicated enough that the reference will probably give you a more detailed answer. It would be wonderful if the vendor really did accomplish their objectives. But you also want to find out if and why they didn't. Question 5. What was the most difficult part of working with the vendor? This is another way of asking question 3. Maybe they didn't have any big problems. But maybe the customer feels that she had to spend too much time managing the on-site consultants. Or maybe they spent too much time on the phone or in off-site staff meetings. Regardless, there must have been something about the relationship that bugged her. Question 6. What advice would you give on how to work effectively with the vendor? This is another way of asking question number 3. It's a little gentler, doesn't assume there were problems, but encourages the reference to give you some tips on the best way of dealing with the vendor. You'll probably learn some juicy tidbits about the vendor's weaknesses. Question 7. Who was the consultant assigned to your project? Who did you particularly enjoy working with? For service vendors, the consultant assigned to the project makes all the difference in the world. Let's say that you check all five references and they all speak in glowing terms of the vendor's abilities. But it turns out that the consultant on all five projects was Rocky. And in all your meetings with the vendor, you've never met a "Rocky." If this doesn't send up red flares, nothing will. Question 8. How were changes in the project scope handled? Every project has changes that occur at some point during the implementation.
It's important to know how the vendor reacts to those changes. On fixed
price contracts, will they nickel-and- dime you on the costs of change orders?
Will their consultants struggle and argue about the modifications? Will
they give fair estimates on the impact of the changes on the project cost?
The reference has already gone through this and can give you some useful
information. Here are some final tips for checking references. Ask for FIVE of them. This will help you spot patterns, and allow for the fact that a couple of them may not return your calls. And try to actually visit at least one customer. This should be the reference that is the best match with your company and your planned implementation. You'll get much better answers in a face-to-face conversation, plus you'll also get some new ideas from a real user, and maybe even do some networking. Checking references is the ONLY chance you're going to have to get some independent verification of the vendor's worthiness to take money out of your wallet. If you don't make an appropriate effort at investigating them, you have only yourself to blame when the project goes sour. And it most likely will.
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